ENCORE AND MONTE CRISTO SIGN AGREEMENT TO PUBLISH DESERT RATS vs. AFRIKA KORPS

Real-time 3D tactical strategy game for the PC recreates campaigns that took place in North Africa during World War II

Los Angeles, CA - January 6, 2004 - Encore, a majority-owned subsidiary of Navarre Corporation (NASDAQ: NAVR), today announced that it has signed an exclusive agreement with Paris-based developer and publisher Monte Cristo to publish Desert Rats vs. Afrika Korps, a tactical real-time strategy game inspired by campaigns waged in North Africa during World War II. Under the agreement, Encore is managing sales, distribution and marketing for the game in the U.S. and Canada, while Monte Cristo is producing the game. Terms of the agreement were not disclosed.

The game is scheduled for release in PC CD-ROM format to major retail outlets nationwide in spring 2004 for approximately $40.

Said Michael Bell, Encore's CEO, "We have been working with Monte Cristo over the past year to ensure that Desert Rats vs. Afrika Korps appeals to U.S. and Canadian consumers. This is the first game in what we hope will be a long-term relationship with Monte Cristo."

Added Jean-Christophe Marquis, Chairman at Monte Cristo, "With its gripping gameplay, cutting-edge 3D technology, historical realism and attention to detail, Desert Rats vs. Afrika Korps offers everything strategy gamers are looking for. As Monte Cristo increasingly focuses on bringing the highest-quality games to the North American market, we are confident that Encore provides the expertise and infrastructure we need to make this game a success."

Highly Realistic Combat in the North African Desert

Set across two campaigns and 20 missions, Desert Rats vs. Afrika Korps offers players the opportunity to play the role of friend or foe as they follow the destinies of English and German heroes who were once friends but who now must fight each other in war. Players engage in missions ranging from recon operations and escort missions to large-scale sieges of desert fortresses. As they play, they can view the battlefield from any perspective - at close range, as an individual soldier, or zooming all the way out to the platoon level. Features of the game include:

• 70 authentic and highly detailed units and vehicles including machine gunners, planes, tanks, APCs and flamethrowers; each vulnerable to location specific damage and equipped with specific abilities and strengths

• Full 3D gameplay and highly realistic graphics - real-time shadows, damage effects, explosions, weather effects

• A story-driven single-player mode with twenty missions and two campaigns, as well as the ability to play either British or German campaigns

• A management phase at the beginning of each mission for players to customize their task force and prepare for battle

• A Blitzkrieg mode at the end of some missions for players to carry their momentum to the next mission

• A pause feature for players to plan up to 3 moves ahead, bringing a turn-based element to an otherwise real-time experience

• Multiplayer for up to 4 players over LAN or Internet (via GameSpy)

About Encore

Encore, a majority-owned subsidiary of Navarre Corporation (NASDAQ: NAVR), is a leading interactive publisher in the PC CD-ROM and videogame markets. The company will launch close to a dozen new entertainment titles in the coming months through licensing or publishing agreements with Marvel (DaredevilT), JoWooD Productions (Silent Storm, Spellforce and Soldner, among others), Ascaron (Sacred) and Monte Cristo (Desert Rats vs. Afrika Korps). The company also offers PC titles or compilations in nearly every major software category from productivity to education.

Encore products are sold in thousands of retail outlets nationwide, and in major international markets. For more information on Encore and Navarre Corporation, visit www.encoreusa.com  and www.navarre.com .

About Monte Cristo

Monte Cristo, founded 8 years ago, has become a respected player in the sector of management and strategy games. Fire Department, Platoon, The Partners, Airline Tycoon, Wall Street Trader, Start-Up, Economic War, Crazy Factory and Casino Tycoon have contributed to Monte Cristo's expertise.

Monte Cristo is now focusing its production and design resources towards life simulation, builders and tactical management with the intention of reaching a larger international audience. For more information on Monte Cristo, visit www.montecristogames.com .

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